BY REUBEN AGYEI DANSO
Hunter residents are increasingly calling for financial assistance, following additional interest rate increases.
Due to the ongoing conflict in the Middle East, the Reserve Bank of Australia has added another increase to national interest rates, bumping up the total to 4.1 percent.
Following the initial spike, the National Debt Helpline has recorded it's highest number of calls recorded for the month of February since 2020.
Last month, the service handled more than 15,800 calls and online chats about mortgage stress, credit card and ATO debts, growing energy bills and personal loans, a nine percent jump on the same time last year.
Helpline coordinator Vicki Staff said the increase is bad news for people who are already struggling.
"The kind of decisions that people are now having to make; do I pay for rent or do I pay for my medicine?" she said.
"So, the more interest rates go up, the more pressure it puts on people".
Ms Staff explained it comes at a time where additional financial pressures are already rampant.
"We already know that the reason behind this rate hike is related to what's going on globally," she said.
"Some people are struggling to put petrol in their cars at the same time.
"So, it's just coming down to those really tough decisions that people are having to make everyday."
Yesterday's increase is expected to add about $100 a month to the repayments on a $600,000 loan.
It comes as inflation sits at 3.8 percent, which is outside the Reserve Bank's target range of between two and three percent.
Financial Counselling Australia CEO Dr Domenique Meyrick said people who are struggling need to know they are not alone.
"They should contact their bank or lender as soon as possible," she said.
"It's critical that banks and lenders respond constructively when customers ask for help."
However, Ms Staff said there is still reason for optimism.
"I think that certainly there is hope that things will ease globally and will provide a pressure release back here in Australia," she added.
